Calavo Growers, Inc. (Nasdaq:CVGW), a worldwide leader in packing and distributing of fresh and processed avocados and other perishable food products, today commented on the strategic benefits it anticipates from the addition of Maui Gold® pineapples to its distribution system.
On Nov. 2, 2007, Maui Land and Pineapple Co. (AMEX:MLP) announced that its agricultural subsidiary, Maui Pineapple Company Ltd., entered into an agreement with Calavo. Under terms of that agreement, beginning Dec. 1, 2007, Calavo will sell, market and distribute Maui Pineapple Company’s Maui Gold fresh product throughout the continental United States and Canada.
The following is a statement from Calavo Chairman, President and CEO Lee E. Cole on the favorable implications of the agreement for the company:
"Our agreement with Maui Pineapple Company is significant on many levels–strategic, operational and financial.
"First, we anticipate that sales of Maui Gold fresh pineapples will contribute $25-30 million in revenues to Calavo’s top line in fiscal 2008, as well as become immediately accretive to earnings.
"Second, the addition of Maui Gold pineapples to our fresh-product lineup is a strong, natural complement to Calavo’s market leadership in Hawaiian-grown Kapoho Solo papayas. In addition, we sell a range of other tropical-produce offerings from the islands. I am confident to say that, through this significant expansion into the pineapple category, Calavo will immediately become the largest distributor and marketer of fresh commodity produce grown in Hawaii, and am duly proud of the company’s economic contribution to the islands.